Industry | Hedge fund |
---|---|
Founded | 1993 |
Founder | Peter Muller |
Headquarters | New York City |
Products | Investment funds |
Services | Investment management |
AUM |
US$ 8.5 billion (as of June 30, 2022) [1] |
Website | pdtpartners.com |
PDT Partners (Process Driven Trading Partners) is a hedge fund company, led by quantitative trader Peter Muller, that was founded in 1993 as part of Morgan Stanley's trading division and spun off as an independent business in 2012. [2] [3] It has offices in New York City and London. [4]
PDT Partners started out as a proprietary trading division (called the Process Driven Trading Group) of multinational financial services corporation Morgan Stanley in 1993. [5] [2] According to Bloomberg, PDT's investments have returned an estimated annual average of more than 20 percent through 2010. [5]
In January 2011, Morgan Stanley announced that it would spin off PDT into a separate hedge fund in order to comply with the Dodd–Frank Wall Street Reform and Consumer Protection Act. [5] [6]
The spin-off began in 2012. In October 2012, it was announced that the Blackstone Group had put $500 million into PDT, but without seeking any equity in the hedge fund. Bloomberg.com considered this unusual and a testament to Muller's market power and ability. [3] In 2013, the spin-off was complete. In February 2013, it was announced that the fund had raised $2.3 billion in total and was beginning operations in London and Hong Kong in addition to New York City. [6]
Peter Muller, the CEO of PDT, who started PDT as Morgan Stanley's proprietary trading group, was described by Bloomberg.com as an "unlikely executive", a 47-year-old math wizard, and a person with diverse intellectual interests and hobbies. [5] [7] In 2019, Forbes reported that Muller earned around $150 million in the previous year, making its list of the highest-earning hedge fund managers for 2018. [8]